Malawi’s business boom: Charting growth across k...

Malawi’s business boom: Charting growth across key sectors

Nyashadzashe Ndoro

Chief Reporter

Fidelity Life Assurance of Zimbabwe Limited has reported a notable performance in its Malawi operations, with a 32% growth in group business, despite the challenging operating environment in the country.

In a trading update for the nine months ended September 30, 2024, the company said growth in Malawi was driven by organic expansion of the existing book and acquisition of new business, contributing to FLA's overall 142% profit growth to US$9.3 million for the nine months ended September 30, 2024.

FLA's insurance contract revenue grew 5% to US$10.8 million, driven by expanded distribution channels and innovative products. The life and pensions business remain the cornerstone of the group, contributing 64% to insurance contract revenue.

The company's micro-lending business saw interest income surge 126%, while non-insurance businesses, including actuarial consulting services and wealth management, continued to grow.

"The Life and Pensions business remains the cornerstone of the group's business as it continues with its strategic thrust to re-orient to core business," Company Secretary Ruvimbo Chidora said.

"During the period under review the local Life and Pension business contributed 64% (2023: 61%) to the insurance contract revenue with the regional unit (Vanguard Life Assurance in Malawi) contributing 34% (2023: 39%). The market demand for the Group's innovative products and organic growth contributed positively to the growth in insurance contract revenue.”

Annuities and Individual Life contributed 69% (2023: 40%) to new business expansion fuelled by our customer centric philosophy.

Chidora attributed the growth to the group's diversified business model and strategic focus on innovation.

"FLA will continue to deploy its all-weather strategy, building long-term wealth and security through innovative customer-focused products," Chidora said.